The company is asking the court to affirm what it says is a provision in its contract with Gogo that allows the carrier to renegotiate or terminate its deal if it could find better service. Gogo shares were trading at $9.51 Tuesday morning, down 31.5 percent from Monday’s close at $13.89.

ViaSat — a Carlsbad, Calif.-based communications company that services inflight Wi-Fi for JetBlue, Virgin America and United Airlines — was trading up 9.6 percent Tuesday morning at $68.49.

In-flight Wi-Fi has long been criticized for high prices and slow service. But equipping planes for faster, more stable access requires taking planes out of service and receiving FAA certification for new technology. Gogo was rolling out its fastest product, satellite-enabled 2Ku, in late January but only 150 planes had received it so far, according to Tech Insider.

Gogo responded to the lawsuit in a statement in an SEC filing.

“We have no comment on the merits of this litigation, but we would like to note that American is a valued customer of ours and that we look forward to resolving the disagreement regarding contract interpretation that led to this declaratory judgment action,” the statement said.

The company said it plans to submit a competing proposal to install 2Ku on American's planes. The technology works with global satellites instead of ground-base stations.

“We believe that 2Ku is the best performing technology in the market and look forward to discussing our offer with American,” the statement said.